According to Louis Bellet, the founder of Yellow Network, a Layer-3 peer-to-peer protocol, the lack of Regulation in the crypto Trading industry is hindering its scalability and leading to scams. In contrast, traditional finance is seen as more efficient and scalable due to its well-established regulatory frameworks. Bellet also discussed the potential of state channels, which can reduce congestion and transaction fees, making them ideal for apps that require rapid transactions. State channels enable off-chain transactions with strict privacy, which is valued by traders. Bellet also identified challenges in the crypto trading industry, including limited exchange availability, consumer protection deficit, high counterparty risk, monopolistic landscape, and the use of legacy systems. He believes that the scalability of crypto trading is hindered by the lack of regulatory frameworks and the need to explore and optimize clearing systems in the crypto space. Yellow Network’s P2P mesh network connects brokers across blockchains, allowing them to access Tokens locked on isolated networks without cross-chain bridging. The use of state channels ensures the privacy of user information by keeping operations off-chain and only reflecting the initial state and final result of trades on the main Blockchain..
#State #Channels #Significantly #Reduce #Congestion #Transaction #Fees #Ideal #Decentralized #Exchanges #Louis #Bellet
#State #Channels #Significantly #Reduce #Congestion #Transaction #Fees #Ideal #Decentralized #Exchanges #Louis #Bellet